Q1 results buoy TASI; Zain jumps on surprise profit

Saudi Arabian shares were lifted on Wednesday by the positive first quarter results that started trickling in.

The Tadawul All Share Index (TASI) climbed to over 7,100-mark early in the session. The benchmark then slipped slightly and moved mostly sideways until finishing 0.9 percent higher at 7,099, its highest close in nearly two months.

Trading turnover was more robust than seen in recent days, amounting to SAR 3.6 billion. The advances- declines ratio was 138/29.

Gains were spread across most sectors. Telecoms jumped 4 percent after a surprise earnings effort from Zain Saudi.

The telco hit the daily maximum at SAR 10.05 after the company reported its first ever quarterly net profit since listing, SAR 45 million. Riyad Capital had predicted a narrowing of loss to SAR 74 million.

Meanwhile, Mobily also gained 7 percent to SAR 23.30 as investors bought up the stock in expectation of a similar performance.

Banks sector rose over 1 percent, led by National Commercial Bank and Banque Saudi Fransi; both rose over 3 percent. Nearly all constituents of the sector gained following the better-than-expected quarterly results at Saudi British Bank.

The lender reported a net profit of SAR 1.04 billion, down 9 percent year-on-year. The effort topped consensus estimates that had net profit at SAR 988 million. SABB shares closed 2.3 percent higher at SAR 22.35.

Meanwhile, SABIC was among top decliners after it went ex-dividend; down 1.3 percent to SAR 100.

Elsewhere, NADEC fell over 2 percent to SAR 33.70. The stock closed nearly 8 percent higher in the previous session.

Write to Brinda Darasha at brinda.d@argaamplus.com